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rhurls(Initiate)Initiate
17 Oct 2025

Bought a flat in 2015 and lived in it until 2021. Moved and and rented it out until Dec 2024 when we sold it. Initial purchase price was $550k, valued at $650 when we started renting it out then it sold for $640k. Questions: 1) Am I correct in saying that we don't have a capital gain, but in fact a $10k capital loss? 2) Do I put the costs associated with selling the property like real estate commissoion, advertising fees and styling in the rental income section (where our other property deductible expensees are included)? and 3) How do I record the capital loss, do I even need to actually enter anything at all? Thanks!

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3 replies
177 views
3 replies

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Taxduck(Taxicorn)Taxicorn
18 Oct 2025

If the sale was at arm's length then this is a capital loss. Costs to sell the property are included in the cost base (element 2) They aren't rental deductions.

Cost base of assets | Australian Taxation Office

Element 1 is market value on date property was first used to produce income. See below.

Using your home for rental or business | Australian Taxation Office

If you don't report anything on your tax return the ATO will question why you didn't (they source details of property sales)

myTax 2025 Capital gains or losses | Australian Taxation Office (see completing this section)

Be aware also of the 6 year rule which allows you to disregard the CGT calculation (exemption under main residence exemption). But then you have no capital loss which you may utilise in the future to claim off capital gains.

Treating former home as main residence | Australian Taxation Office


rhurls(Initiate)Initiate
25 Nov 2025

Hi there,

Thanks so much for this reply. Can I ask one more clarifying question: When calculating the capital loss, do I use the value of $650k as the starting cost base This was the amount the property was valued at when we first started renting it out in 2021. We initially purchased it for $527k in 2015.

Many thanks.

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How to recording capital loss and investment property deductions in MyTax | ATO Community